Why is rvol an important metric for cryptocurrency investors?

1 answers

• IDASep 22, 2021 · 4 years ago
  As a cryptocurrency investor, rvol is an important metric to consider when evaluating potential investments. Rvol, or relative volume, measures the trading activity of a cryptocurrency relative to its average trading volume. By analyzing rvol, investors can gain insights into the liquidity and market interest of a cryptocurrency. High rvol indicates a high level of trading activity and market interest, which can result in increased price volatility. This can present both opportunities and risks for investors. On the other hand, low rvol suggests a lack of trading activity and market interest, which may indicate a more stable price. Understanding rvol can help investors make more informed decisions and manage their risk exposure in the cryptocurrency market.
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